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The Parties' Flip-Flops on Deficit Spending: Economics or Politics?

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  • Stiglitz Joseph

    (Columbia University)

Abstract

Not long ago, Republicans were trying to pass a balanced budget amendment to the constitution. Democrats were skeptical, overwhelmingly Keynesian, and believed that deficit spending had ended the Great Depression. Under Rubinomics the positions began to switch: Democrats became the defenders of fiscal orthodoxy. Now Bush has cut taxes for the rich and caused huge deficits. Is the flip-flop just politics?

Suggested Citation

  • Stiglitz Joseph, 2004. "The Parties' Flip-Flops on Deficit Spending: Economics or Politics?," The Economists' Voice, De Gruyter, vol. 1(1), pages 1-7, September.
    • Handle: RePEc:bpj:evoice:v:1:y:2004:i:1:n:2
    DOI: 10.2202/1553-3832.1001
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    Cited by:

    1. Javier Andrés & Rafael Doménech, 2006. "Fiscal Rules and Macroeconomic Stability," Hacienda Pública Española / Review of Public Economics, IEF, vol. 176(1), pages 9-41, April.

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